Johannesburg’s electricity utility, City Power, is once again under the spotlight after the Hawks intensified their probe into questionable contracts. The most recent focus is a R67 million purchase order for transformers in 2023, allegedly paid for but never delivered.
This Hawks raid City Power development follows months of mounting scrutiny into the utility’s financial management, procurement processes, and governance failures. City Power insists it is cooperating fully with investigators, but questions continue to grow about systemic weaknesses that enabled such alleged irregularities.
For related updates on electricity supply in the province, see our latest Gauteng Load Reduction Schedule: 23 – 30 September 2025.
Hawks Visit Not a Raid, Says City Power
Reports of a “raid” at City Power’s headquarters in Johannesburg surfaced earlier this year, raising alarm about large-scale corruption. However, the utility’s spokesperson, Isaac Mangena, clarified that these actions were formal and procedural.
“It is important to note that these visits are part of the normal course of the investigation and not raids. The Hawks may, from time to time, visit our premises when they require additional information, and we have made it clear that they are welcome at any time.”
Mangena emphasised that City Power has already responded to a formal Request for Information (RFI) from the Hawks.
Background: Suspicious Contracts Under the Microscope
The transformer deal is only one of several questionable contracts under investigation. Earlier reports revealed:
- A procurement deal quoted at R8 million but inflated to R100 million.
- A R55 million consultancy contract duplicating duties already handled by senior managers.
- Reports of suspicious invoices worth hundreds of millions of rands flagged but processed regardless.
These contracts contribute to City Power’s worsening finances. In the 2023/24 financial year, the utility reported a R2.8 billion loss. By September 2024, its bank balance had sunk to -R16.3 billion.
Auditor-General Flags Governance Failures
The Auditor-General’s 2024 report on City Power identified glaring weaknesses in internal controls. It flagged serious breaches in procurement and payment systems.
In response, City Power conducted its own internal investigation, completed in March 2025. The findings were alarming:
- Collusion between employees and service providers
- Fraudulent job numbers and duplicate approvals
- Irregular expenditure leading to “significant financial losses”
These revelations confirm that procurement vulnerabilities were deeply entrenched within the utility.
For insights into governance and accountability, read our coverage of the Madlanga Commission Highlights: Key Moments You Need to Know.
Public Trust and Service Delivery Risks
For many Johannesburg residents, City Power’s troubles are more than an accounting issue. Allegations of corruption affect service delivery, especially in communities already struggling with outages, cable theft, and rising tariffs.
Analysts warn that if financial leaks continue, City Power’s ability to maintain infrastructure will weaken further. This could deepen Johannesburg’s electricity reliability crisis and force higher costs on consumers.
Hawks Raid City Power: What Happens Next?
The Hawks’ investigation is still ongoing, with no arrests confirmed yet. However, forensic evidence, procurement records, and financial audits are expected to shape the next phase.
If charges follow, senior executives and contractors implicated could face prosecution. Opposition parties and civic groups are also calling for a forensic audit of all contracts signed in recent years.
Mangena has reassured the public that City Power will “cooperate fully with this lawful process”, stressing the utility’s commitment to compliance.
A Test Case for Municipal Governance
The Hawks raid City Power case underscores broader concerns about governance in South Africa’s municipal-owned utilities. Emergency procurement, poor oversight, and collusion are recurring risks.
City Power’s case could become a test of accountability. The outcome will reveal whether South Africa’s anti-corruption framework can deliver justice in large-scale municipal investigations.
For now, Gauteng residents will watch closely as the Hawks dig deeper into contracts that appear to have drained the city’s electricity utility of millions.
